The communique, signed by Prime Minister Kevin Rudd and Indonesian President Susilo Bambang Yudhoyono, reinforces both countries' emphasis on regional solutions to people smuggling.

''They stressed the importance of avoiding unilateral actions which might jeopardise such a comprehensive regional approach and which might cause operational or other difficulties to any party,'' the communique said.

After the leaders met on Friday, Dr Yudhoyono stressed that the asylum seeker issue was not just a problem for Australia.

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"Indonesia also receives thousands of boat people … we have to manage this inflow and at the same time, if we are the only ones solving this issue, it will not be fair," he said.

They were the strongest comments yet from the Indonesian President on the subject, and they appear to be aimed at the Australian Opposition Leader, who has said if it wins the coming election the Coalition would have a Jakarta, not Geneva, focus, and that his relationship with the Indonesians meant they would accept his turn-back-the-boats policy.

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But Indonesians at many levels have made it clear they dislike his approach because it seeks to push the problem back in their direction.

Dr Yudhoyono proposed in the meeting to call a conference of "all parties" in the region, who he said must be jointly responsible for the increasing flow of asylum seekers and the power of people smugglers. The conference - which Mr Rudd endorsed - should be held by the end of this month. It would involve countries such as Afghanistan, Iran and Myanmar, where many refugees come from, countries such as Indonesia that they pass through and Australia, their destination.

In his first press conference as Prime Minister last week, Mr Rudd received fierce criticism from the opposition when he said Mr Abbott's policy risked ''conflict'' with Indonesia.

''So what happens on day one when Field Marshal Tony puts out the order to the captain of the Australian naval frigate X to turn back a bunch of boats?'' Mr Rudd said, ''and you've got a naval frigate from the Indonesian navy on the other side of the equation?''

Opposition immigration spokesman Scott Morrison said in a statement: "We believe strong domestic border policies support the broader regional border security agenda being advocated by Indonesia. That is what the Coalition's policies on our borders are all about."

Dr Yudhoyono seemed to give some concession to Australian concerns about strict quotas for beef imports, which have cruelled the northern Australian cattle industry.

Without saying anything concrete on quotas or his country's policy of beef self-sufficiency, he acknowledged that, with his country's "consuming class" growing, the need for beef would increase beyond the local industry's ability to supply it.

He opened the door to increased Australian beef.

But both he and Mr Rudd agreed that Australia should also do more to develop the Indonesian industry.

Mr Rudd announced a $60 million funding package over 10 years to establish an Indonesia-Australia Red Meat and Cattle Forum.

The fund is designed to help boost Australian companies' investment in the beef industry in Indonesia.

Earlier, Mr Rudd had said he was optimistic about a future in which Australia provided expertise to a larger Indonesian beef industry, but quotas had to be eased first.

"It begins of course with the relaxation of supply constraints in the Indonesian beef market,'' he said.

Beef and cattle export has been a contentious issue between the countries since a 2011 animal cruelty scandal led to a month-long ban of live exports to Indonesia. After that, Indonesia imposed strict quotas on all beef imports.